Question
To assess the capital invested in the company's
operations, K Ltd. needs to determine the capital employed. Given the provided financial data, what is the correct amount of capital employed?Solution
All assets minus current liabilities: All assets = Land Rs.200,000 + Building Rs.200,000 + Fixed Assets + 200,000 + Debtors Rs.200,000 + Other Current Assets Rs.200,000. = 10,00,000 Current liability = 200000 Capital employed = 800,000
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